Starwood buys $600m rental portfolio in Florida

Published at: 2018-01-08 15:33 | Author: CIJ USA

Starwood Property Trust has signed an agreement to acquire a $600m multifamily affordable housing portfolio in Florida. The 99-percent leased portfolio includes 6,185 units in 28 properties located primarily around Orlando as well as in West Palm Beach, Tampa, and Miami MSA's. Starwood Property Trust is acquiring the portfolio with a combination of units in a newly-formed subsidiary which are exchangeable into STWD common shares, cash and debt financing. The transaction is expected to close in phases linked to regulatory approvals and the assumption of in-place financing. The first phase, comprising 1,740 units, closed late in December 2017. Starwood expects to complete the remaining phases of the transaction by the end of the second quarter 2018.

Stated Barry Sternlicht, Chairman and CEO of Starwood Property Trust said the portfolio features properties in strong Florida locations. "Given the persistent supply/demand imbalance for high quality rent restricted housing coupled with its attractive financing, we believe this investment will provide stable and attractive double digit cash-on-cash returns over the long term."